[economics] One-sided model of unemployment question :) Unemployment One-sided model:(a): What causes the shift in the welfare of the unemployed and employed in one-sided searchmodel?One-sideed search model of Unemployment:• Let Ve(w) denote the welfare of employee and workers earn a real wage.•Let & denote the separation rate, which is the fraction of workers who will become randomly separated from their jobs every period.• Let the welfare of an unemployed worke, which is denoted by Va• Let b denotes the constant real amount of U(Unemployment insurance) benefit.• Let p denotes the frequency of unemployed workers receive job offers. (Frequency of Job offer).-Vu increases when b increases. An increase in the UI benefit increases an unemployed worker's welfare..-Vu increases when p increases. With a higher p the chances are better for the unemployed worker of receiving a job offer..Ve(w)Vu(0,0)w"Ve(w)W.W

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(a): What causes the shift in the welfare of the unemployed and employed in one-sided search model?

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[economics] One-sided model of unemployment question :)

Unemployment One-sided model:
(a): What causes the shift in the welfare of the unemployed and employed in one-sided search
model?
One-sideed search model of Unemployment:
• Let Ve(w) denote the welfare of employee and workers earn a real wage.
•Let & denote the separation rate, which is the fraction of workers who will become randomly separated from their jobs every period.
• Let the welfare of an unemployed worke, which is denoted by Va
• Let b denotes the constant real amount of U(Unemployment insurance) benefit.
• Let p denotes the frequency of unemployed workers receive job offers. (Frequency of Job offer).
-Vu increases when b increases. An increase in the UI benefit increases an unemployed worker's welfare..
-Vu increases when p increases. With a higher p the chances are better for the unemployed worker of receiving a job offer..
Ve(w)
Vu
(0,0)
w"
Ve(w)
W.
W

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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